Piper Sandler Assumes Sierra Bancorp (BSRR) at Neutral

Piper Sandler analyst Matthew Clark assumes coverage on Sierra Bancorp (NASDAQ: BSRR) with a Neutral rating and a price target of $16.50.

The analyst comments "We assume coverage of BSRR at Neutral based on its relative valuation and our more conservative outlook. We establish 2023E / 2024E EPS of $2.29 / $2.05 that assume low-single-digit B/S growth, more NIM pressure, N-T NIE relief, some normalization of credit, and an active buyback. Our $16.50 PT reflects 8.0x our 2024E EPS, consistent with a peer multiple (8.0x) given its relatively avg profitability profile. We view BSRR as a conservatively run, commercial banking franchise with a more selective appetite for growth, stickier retail deposit base, and competitive returns. A couple of niche verticals (dairy & mortgage WH) can create some volatility in loan balances based on seasonality and the level of rates."

For an analyst ratings summary and ratings history on Sierra Bancorp click here. For more ratings news on Sierra Bancorp click here.

Shares of Sierra Bancorp closed at $16.95 yesterday.

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